Agenda

Presentation 1 – Managing Capital Cost from WBS to Fixed Assets

Future Sessions

Introduction

Presentation 2 – BusinessObjects, Planning and Consolidation

Future Sessions

Agenda

Presentation 1 – Managing Capital Cost from WBS to Fixed Assets

Introduction

Presentation 2 – BusinessObjects, Planning and Consolidation

Time Item

13.00 Buffet Lunch

13.30 Introduction to ForumContextAimsPrevious Forums

13.40 Session Presentation:Managing Capital Cost from WBS to Fixed Assets (Tim Hatcher, Senior SAP Consultant)

14.10 Q&A

14.20 Teas, Coffee and Networking

14.30 Session Presentation:BusinessObjects, Planning and Consolidation (Jerry Fawcett, Principal Consultant)

15.00 Q&A

15.10 Future SessionsTopic SuggestionsAOB

15.20 Coffee and Networking

Agenda

Agenda

Presentation 1 – Managing Capital Cost from WBS to Fixed Assets

Future Sessions

Introduction

Presentation 2 – BusinessObjects, Planning and Consolidation

• Fire Alarm

• Assembly Point

• Fire Exits

• Restrooms

• Mobile Phones

• Please put on silent/vibrate

Health & Safety Information

Introduction to Absoft

ISO 20000 (Service Management) & ISO 27001

High staff & client retention rates

140+ permanent employees

Founded in 1991

SAP experience since 1992

SAP consultancy practice

SAP Services, VAR & Business Analytics partner

Information Security Certified Nov ‘12

• SAP Implementation

• SAP Consulting

• SAP Training

• SAP Support (Front & Back-office)

• SAP Infrastructure

• Data Migration

• ReadSoft

• BusinessObjects

Products & Services

Oilfield Services Large E&P

O&G Manufacturing Small-Mid E&P

Oil & Gas Clients

• Informal network for oil and gas organisations using SAP

• Share best practice use of SAP in the finance arena

• Foster discussion around potential solutions for common pain points

Aims

• Forum not recognised or sponsored by SAP

• Forum is not intended to in any way compete SAP User Group

• http://www.sapusers.org/members/sigs.php?sig

• Calum Davidson – Calum.Davidson@subsea7.com for info

• Keen to extend reach of forum: open to all SAP using companies in oil and gas sector

• Absoft happy to act as co-ordinator – agenda/topics to be driven by participants

Context

Agenda

Presentation 1 – Managing Capital Cost from WBS to Fixed Assets

Future Sessions

Introduction

Presentation 2 – BusinessObjects, Planning and Consolidation

Management of Capital Costs From WBS to Fixed Assets

• Projects and Assets in Context• Work Breakdown Structure• Assets• Top Tips• Implementation Considerations

Projects and Assets in Context

Investment Management – CAPEX and OPEX Programs

Project SystemsPlant

MaintenanceFixed Assets

Joint Venture Accounting

Cost Centre Accounting

Time Sheets

Benefits – Investment Management

• Flexible Program structuring to suit any organisation design and changes through time

• Planning through the Program structure hierarchy, linking into Project Systems

• Appropriation request planning and authorisation, including the availability of workflow

• Budget control from the top of IM down to Project level

Benefits – Project System

• Flexibility of Project structure and available functionality to meet any Project design and execution requirements

• Planning, executing, monitoring and control functionality to meet a wide range of requirements

• Integration into IM, MM, HR, PM, RE-FX, FI, CO to meet cross modular execution and reporting requirements

Benefits – Asset Accounting

• Fixed Asset accounting structures and valuation methods to meet External and Internal Accounting requirements

• Integration to PS, PM, RE-FX, FI, CO for integrated processing and reporting

Investment Management

• Investment Management • Functionality to support Organising, Planning,

Executing and Controlling organisations CAPEX and OPEX investments

Project Systems

• Project Objects

• Project Definition – overall control parameters for the whole project

• Work Breakdown Structure – flexible structure to accommodate project planning and execution logic

• Network with Activities – detailed project planning and execution

• Work Centres – internal and external resources for project execution

• Milestones – logical points in project execution lifecycle

• Project Team – Internal and External Labour Resource

• Project Materials/ Bill of Materials/ Stock

Project Systems

• Complex Project

Project Systems

• Plan, Control and Manage Project Resources

Project Systems

• Project Objects – Simple Project

Assets Under Construction

• Assets that can be automatically created via a link with WBS elements

• Requires the WBS element to be an Account Assignment Element and for it to have a properly configured Investment Profile assigned

System Demo

• Investment Management Structure

• Project Builder

• Asset Link to WBS Element/s

Joint Venture Shares

• Manage Joint Venture expenditure via the Project Structure

• Gross expenditure project structure, cutback to partner shares

• Operator net share settled to AUC and then final asset/s

Final Assets

• Joint Venture net share settled to AUC and Final Assets

• Asset Classes produced as a result of the Project –design decision based on Financial and Management Accounting Rules

• Depreciation Treatment according to Financial Accounting and Internal Accounting Rules

• Assets linked to Plant Maintenance, Cost Centre Accounting, RE-FX as appropriate

Top Tips

• Aim for consistency in Project Structures –consistency builds efficiency and reduces risk –use Project Templates

• Consider Project Management (project activities) and Project Cost Management when agreeing project structures

Top Tips

• Capture the right data – use the available PS objects – WBS elements, networks, network activities, materials, project resources, standard and custom fields – to enhance project execution

• Despite the ability to be flexible, keep the structures as simple as possible

Top Tips

• Plan at the right level – SAP supports planning (budgeting) at various levels of the Project Structure and Investment Management structures

• Choose the planning level that gives a good level of detail without being onerous to maintain

Top Tips

• Actively control spending through Budget Functionality and/ or active reporting

Top Tips

• Used focussed reporting to manage the project pipeline

Implementation Considerations

• How detailed do Project Structures need to be – consider WBS and Networks

• Business processes to manage the project – project structure, project statuses, dates, project resources, project financials

• Value of controls that could be implemented – Investment Management, Appropriation Requests, Plans, Budgets

• Could the annual budget cycle benefit from Investment Management for more structure and control

Implementation Considerations

• What cost elements will be relevant for different types of projects

• What type of costs will be managed on Projects –CAPEX and/ or OPEX

• How to integrate into existing modules – e.g. PM, CCA, CATS

Discussion

Agenda

Presentation 1 – Managing Capital Cost from WBS to Fixed Assets

Future sessions

Introduction

Presentation 2 – BusinessObjects, Planning and Consolidation

BPC – What Is It?

• To give it its full title:-

– SAP BusinessObjects Planning and Consolidation

• SAP’s go-to solution for planning and consolidation

– There are alternatives….

• BCS or EC-CS for consolidation

• BPS or IP for planning

BPC in Oil & Gas

• CAPEX Planning Track capital expenditure from the approval process to post-approval commitment

• Budgeting and MonitoringManaging budgets from HQ across multiple subsidiaries and countries

• Strategic Long Range PlanningOil and gas companies are typically focussed on long range planning (5+ years)

• Driver based and Risk Adjusted PlanningOil and gas planning needs to adapt to fluctuating drivers like oil price and exchange rates

• Integrated Financial and Operational PlanningLink operational planning activities (acquisition, E&P, and abandonment planning) to financial planning, in order to represent them in financial terms

Versions of the Product

• There are two versions of the product

– NetWeaver

• HANA option available

– Microsoft

• Fundamentally the same, but there are some differences

• SAP is committed to developing both versions

– HANA

– NetWeaver

– Microsoft

SAP Solutions for EPM

SAP NetWeaver BWSAP Business

Suite Non-SAP sources and platforms

SAP BusinessObjects BI

InfoView / SAP Portal / Browsers / Enterprise Portals

Workspace/ UIMS Office

Harmonized Web User Interface / Common EPM Add-in

Financial Information Management

Planning and Consolidation

Profitability and Cost Management

Disclosure Management Financial Consolidation

Intercompany Strategy Management

Streamlined planning and a faster, more compliant close

Unstructured Data

Business Process Management

Unified Platform

Automation and Reporting

SAP Business Planning and Consolidation

ERP LoB

CRM HR

Structured Data Flexible User Interface

Microsoft Office

Web Browser

EPM Add-in for MS Office

Streamlined planning and a faster, more compliant close

• Familiar and easy to use– Increased user adoption

– Reduced reliance on IT

– Designed for business users

• Process-centric– Configurable business process flows

– Drives process consistency

– User owned and managed

• Unified– Single, integrated solution

– Low maintenance, improved integrity

– Simplifies deployment

Setup by IT - owned and managed by business users

IT Responsibility

• Hardware

• Security and authentication

– Users

– Roles

– Privileges

• Data and application Infrastructure

– Database server

– Application server

• OLAP structure

Business User Responsibility

• Application security

– Users

– Roles

– Privileges

• Hierarchies and roll-ups

• Report templates

• Excel, Word, PowerPoint templates

• Create and modify metrics and measures

CIO

€¥$

CFO

BPC – Main Features

• Administration Client

– Models

– Dimensions

– Users/Security

– Business Rules

• Business Process Flows– Work flows to guide users through the steps they need to

perform

• Work Status– Secures slices of the database against

unauthorised/accidental changes

System Demo

BPC – Summary

• SAP’s flagship solution for planning and consolidation

– Owned by business rather then IT

– Addresses many planning/reporting/forecasting requirements

• Open architecture

– Data easily acquired from variety of sources

– Exposed to a variety of reporting tools, including Excel and BO

• Intuitive

– Web/Excel interface for data entry

– Business Process Flows to guide users through tasks

Discussion

Agenda

Presentation 1 – Managing Capital Cost from WBS to Fixed Assets

Future Sessions

Introduction

Presentation 2 – BusinessObjects, Planning and Consolidation